Quest Diagnostics 2013 Annual Report Download - page 106

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F- 34
A summary of the fair values of derivative instruments in the consolidated balance sheets is stated in the table below:
December 31, 2013 December 31, 2012
Balance Sheet
Classification Fair Value
Balance Sheet
Classification Fair Value
Derivatives Designated as Hedging Instruments
Asset Derivatives:
Interest rate swaps Other assets — Other assets $ 1
Forward starting interest rate swaps Other assets 2 —
Liability Derivatives:
Interest rate swaps Other liabilities 34 Other liabilities 3
Derivatives Not Designated as Hedging Instruments
Asset Derivatives:
Put option Other assets 4 Other assets —
Liability Derivatives:
Call option Other liabilities 8 Other liabilities —
Total Net Derivatives Liabilities $(36) (2)
15. PREFERRED STOCK AND COMMON STOCKHOLDERS’ EQUITY
Series Preferred Stock
Quest Diagnostics is authorized to issue up to 10 million shares of Series Preferred Stock, par value $1.00 per share.
The Company's Board of Directors has the authority to issue such shares without stockholder approval and to determine the
designations, preferences, rights and restrictions of such shares. No shares are currently outstanding.
Common Stock
On May 4, 2006, the Company's Restated Certificate of Incorporation was amended to increase the number of
authorized shares of common stock, par value $0.01 per share, from 300 million shares to 600 million shares.
Changes in Accumulated Other Comprehensive (Loss) Income by Component
The market value adjustments represent unrealized holding gains (losses) on available-for-sale securities, net of taxes.
The net deferred loss on cash flow hedges represents deferred losses on the Company’s interest rate related derivative financial
instruments designated as cash flow hedges, net of amounts reclassified to interest expense (see Note 14). For the years ended
December 31, 2013, 2012 and 2011, the tax effects related to the market valuation adjustments and deferred losses were not
material. Foreign currency translation adjustments are not adjusted for income taxes since they relate to indefinite investments
in non-U.S. subsidiaries.
QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – CONTINUED
(in millions unless otherwise indicated)